Banpu reached a final investment decision in the U.S.

Editorial Staff

Banpu reached a final investment decision in the U.S.

Banpu Plc, a leading international versatile energy provider, has taken another big step forward in the Carbon Capture, Utilization and Storage (CCUS) project in the U.S., following the initiatives of the “Barnett Zero” and the “Cotton Cove” projects.

The company recently entered into a carbon sequestration agreement with the State of Louisiana, referred to as the “High West” project, supporting Banpu’s goal to ultimately achieve net zero carbon emissions in the U.S. upstream business. The Barnett Zero project, which is Banpu’s first CCUS project, was initiated in and reached final investment decision (FID) in 2022, making Banpu the first Thai company to reach FID on a CCUS project in the U.S.

Later in July 2022, Banpu commenced drilling the Barnett Zero project, and is targeting the first injection of CO2 by December 2023. Banpu expects this project will be one of the first permanent commercial CO2 disposal and sequestration projects to come online in the United States.

The Barnett Zero project will separate CO2 from the majority of Banpu’s EnLink*-gathered natural gas production. Banpu’s second CCUS project, referred to as the Cotton Cove project, reached internal FID in October 2022. The Cotton Cove project will separate, dispose of, and geologically sequester CO2 generated as a byproduct of our natural gas production in the Barnett and will utilize the Company’s midstream assets to do so.

Mrs. Somruedee Chaimongkol, chief executive officer of Banpu Plc said Banpu is targeting commencement of CO2 sequestration activities at Cotton Cove by the end of 2024, subject to the ability to secure all required permits. The total investment for the Barnett Zero project is estimated to be between US$29.0 and $34.0 million, while the Cotton Cove project investment will approximately be between $14.0 and $24.0 million with an average sequestration rate of up to approximately 210,000 and 80,000 metric tons of CO2e per year respectively.